The Central Bank of Nigeria (CBN) has disclosed that 32 deposit money banks have met the new minimum capital requirements ahead of the March 31, 2026 deadline. Governor of the apex bank, Olayemi Cardoso, made the disclosure on Thursday at the 2026 Monetary Policy Forum in Abuja, where he also declared that the most difficult phase of Nigeria’s economic reform programme is now over.
Cardoso said the banking sector recapitalisation programme has recorded commendable progress, noting that the early compliance by a significant number of banks reflects growing confidence in the reform agenda and positions the sector to support productive investments.
He explained that the new capital thresholds are designed to enhance banks’ capacity to mobilise long-term funds, absorb shocks, and play a more effective role in financing Nigeria’s ambition of building a $1 trillion economy.
The CBN governor further noted that the recapitalisation exercise is part of a broader set of reforms introduced to restore macroeconomic stability after years of structural imbalances and policy distortions.
According to him, when the current administration took office in 2023, the economy faced elevated risks, including soaring inflation, foreign exchange shortages, weak reserves, and excessive reliance on monetary financing.
He said the apex bank responded with bold and coordinated measures, including tightening monetary policy, restructuring the foreign exchange market, and restoring discipline in monetary-fiscal operations.
He added that the reforms have begun to yield tangible results, with headline inflation declining significantly to 15.06 per cent in February 2026 from a peak of 34.8 per cent in December 2024.
Cardoso also highlighted improvements in the foreign exchange market, including the clearance of over $7 billion in backlogs, increased liquidity, and a narrowing of the gap between official and parallel market rates to below two per cent.
Nigeria’s external reserves, he said, have strengthened to $50.12 billion, the highest level in over a decade, while net reserves have recorded a sharp increase, reflecting improved external buffers and stronger confidence in the economy.
He further noted that international rating agencies have acknowledged the impact of the reforms, with upgrades to Nigeria’s sovereign ratings, alongside the country’s exit from the Financial Action Task Force (FATF) grey list.
Despite the gains, the CBN governor stressed that the next phase of policy would focus on consolidation, including anchoring inflation to single-digit levels, sustaining exchange rate stability, and deepening financial market development.
He however, warned that risks remain, particularly from global economic uncertainties, oil price volatility, domestic supply constraints, and election-related spending pressures.
He said: “Looking ahead, the macroeconomic prospect remains cautiously optimistic as we are mindful of the ongoing global and domestic risks. Global growth, though projected at 3.3 per cent for 2026, may be tempered by tight financial conditions, lingering effects of monetary tightening, and geopolitical tensions. The Middle East crisis throughits impact on oil price volatility, constitutes a major source of risk to the Nigerian economy.
“The reforms we have undertaken were not easy, but they were necessary and designed to secure the long‑term stability and prosperity of our nation. The most challenging phase of macroeconomic adjustment is now behind us, with solid foundations laid for sustained stability.”
Also speaking, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, commended the Central Bank’s policy direction and emphasised the importance of sustained stakeholder engagement in shaping monetary outcomes.
He described the forum as timely, noting that stakeholder feedback remains critical in refining monetary policy responsibilities and ensuring alignment with broader economic objectives.
Edun explained that while monetary policy authorities deploy tools such as interest rates to curb inflation, their impact extends across the economy, affecting government financing, businesses, and households.
The Minister further highlighted the significance of the CBN’s transition towards an inflation-targeting framework, describing it as a major institutional milestone that would enhance policy credibility, improve communication, and anchor inflation expectations over time.
According to him, Nigeria is now transitioning from a phase of stabilisation to growth and acceleration, with the government targeting GDP growth of about seven per cent, roughly double the inflation rate, to lift millions out of poverty.
“When interest rates are high, the cost of financing rises across the board. However, as reforms take hold and inflation begins to ease, we can reasonably expect interest rates to decline over time, subject to decisions by the relevant authorities,” he said.
Earlier, the CBN Deputy Governor for Economic Policy, Muhammad Abdullahi, emphasised the importance of sustained stakeholder engagement, noting that macroeconomic stability cannot be achieved by the central bank alone.
Abdullahi said the Monetary Policy Forum provides a critical platform for dialogue between policymakers, financial institutions, and the private sector to ensure that reforms are well understood and effectively implemented.
According to him, “The value of this forum lies not only in the perspectives shared by policymakers, but also in the feedback received from stakeholders across the economy. We therefore encourage all participants to engage in robust and constructive dialogue in the course of our deliberation.”